Currency News [January 22, 2024]

The news of the impending disbursement of the second tranche of funds under the International Monetary Fund’s (IMF) Extended Credit Facility arrangement did little to lift the struggling local currency as the Cedi opened the week posting losses against its three major trading peers on the Open Forex Market (oanda.com). On the Bank of Ghana’s (BoG) inter-bank trading platform, however, the Cedi traded mixed as it built on its recent losses against the Dollar and the Pound but maintained its resilience against the Euro.

After successfully reaching an agreement in principle with the Official Creditors’ Committee under the G20 Common Framework on the key parameters of the proposed debt restructuring, Ghana is expected to receive USD 600.0 million to supplement its budget and to sustain its struggling national currency. An approval of the funds by the IMF is also expected to unlock additional funding from the World Bank and other donors. These inflows would be expected to sustain the local currency in the short term.

On the BoG inter-bank trading platform, the Cedi plunged by 0.46% and 0.43% to open the week at trade values of GHS 11.9682 and GHS 15.2343 from last week’s opening trade values of GHS 11.9137 and GHS 15.1697 against the Dollar and the Pound respectively. The Dollar stood firm against a basket of peers supported by solid labour market and retail sales data which signaled that the US economy remained robust. Against the Euro, the Cedi climbed up by 0.03% to begin the week trading at GHS 13.0397 from last week’s opening trade quote of GHS 13.0436.

On the Open Forex Market (oanda.com), the Cedi traded down by 0.79%, 0.61%, and 0.25% to begin the week trading at GHS 12.0880, GHS 15.3677, and GHS 13.1688 from last week’s opening trade values of GHS 11.9931, GHS 15.2747, and GHS 13.1361 against the Dollar, the Pound, and the Euro respectively. An acceleration in the UK’s inflation for December, implying that the Bank of England will be slower to cut rates than its peers boasted the Pound’s appeal.

The Cedi was quoted at GHC 11.8859 on the first trading day of the year against the Dollar and is currently being sold at GHS 11.9682 indicating a YTD loss of 0.69% on the BoG inter-bank trading platform. It is also presently being quoted at GHS 12.0880 on the Open Forex Market (oanda.com) after opening the year at GHS 11.9945 indicating a YTD loss of 0.78%.